North Carolina Down Payment Support Systems

Payments Gateway - The North Carolina Housing Finance Agency has two excellent programs for first-time Home Buyers. These systems will be the Down Payment Assistance Program and also the Mortgage Credit Certificate.

You purchase a property and December 1, 2009 and if you meet the requirements for one of the programs, you might also be eligible for the $8,000 tax credit only enacted into law.

First, who is a first-time Home Buyer? A First Time Home Buyer is someone who has not owned a home in the prior three years. This is exactly the same qualifying definition.

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with low and average incomes. All home owners can claim an itemized deduction.

You are able to claim 20% of the interest you pay as a credit on your own federal income taxes in case you are eligible for the MCC. You are able to save up to $2,000 on your taxes.

You'll have the ability to combine this if you do qualify for 2009, for the MCC. This could reduce a purchaser's tax liability by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on the price of the home and also your income you are buying. Household income is defined as the “gross income of the mortgagor and any individual expected to reside in the home who's 18 years of age or older.”

House price limits that apply in Durham Orange and Chatham Counties and the income are listed below.

MCC Income Limits 1 Man $61,500 2 Persons $61,500 3 Individuals $70,500 4 Persons $70,500

MCC Sales Cost Limits New House $220,000 Existing House $210,000

Who Qualifies for Down Payment Assistance?

The buyer only has to pay and the load would pay around $8,000 of the remaining balance.

This plan has more stringent income limits than the MCC plan outlined above. Like the MCC application, it might be used in combination with the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment help, however, can not be applied in combination together with the MCC. This is an either or scenario.

House price limitations Durham and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Man $39,950 2 Persons $45,650 3 Individuals $51,350 4 Men $57,050

Down Payment Assistance Sales Price Limits New Dwelling $210,000 Existing Residence $210,000